Tánaiste and Minister for Enterprise and Innovation Frances Fitzgerald has published a new Bill which aims to address the increasing cost of insurance.

The proposed legislation is intended to further strengthen the low-cost insurance claims settlement model which the Personal Injuries Assessment Board provides.

The Tánaiste said that by encouraging more claims to be settled at an earlier stage, many costs could be taken out of the settlement process and that the savings should ultimately benefit the consumer through lower insurance costs.

But Insurance Ireland has expressed concern that the draft Personal Injuries Assessment Board (Amendment) Bill may not go far enough to strengthen PIAB’s powers to settle more claims and reduce costs in the claims settlement process.

Insurance Ireland CEO Kevin Thompson stated that the key issues are the high level of personal injury awards and the high cost of settling claims relative to other jurisdictions. 

He said that Insurance Ireland want to strengthen the powers of PIAB to enable it to settle claims swiftly and efficiently. 

"However, under this Bill, if a claimant is unwilling to comply, the PIAB will still not be able to make a full assessment of their medical condition and recommend an appropriate award," he stated.